Canadian Man Sentenced in Manhattan Federal Court to 90 Months in Prison for $4 Million Ponzi Scheme

U.S. Attorney’s Office
January 15, 2010

Southern District of New York(212) 637-2600

PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that BRIAN DAVID
ANDERSON was sentenced today to 90 months in prison for operating
a $4 million investment fraud and Ponzi scheme. ANDERSON pleaded
guilty to wire fraud charges on August 28, 2008. United States
District Judge ALVIN K. HELLERSTEIN imposed the sentence today in
Manhattan federal court.

According to the Superseding Indictment, ANDERSON's
plea allocution, and statements made during today's sentencing
proceeding:

ANDERSON devised and ran a program called "Frontier
Assets," in which ANDERSON made a series of false representations
to investors, including the promise of high rates of return, in
order to induce them to provide millions of dollars in investment
money. Contrary to his representations, however, ANDERSON never
made any significant investments with the money he solicited, and
instead used money provided by new investors to pay off prior
ones.

ANDERSON touted Frontier Assets as an exclusive
"private loan program" that promised high rates of return in the
form of interest payments on the invested principal. For
example, in a document titled "How Does Frontier Assets Make
Their Income," Frontier Assets boasted that it had been appointed
a "Program Manager" to a "major International Business
Corporation" that participates at the "private banking level of
several significant European and Asian banks."

Frontier Assets claimed the ability to place investors
with offshore entities, including "Private Placement Investment
Programs," "Real Estate development in Asia and the United
States," "Manufacturing plants," "Commodities worldwide," "Forex Exchange," and "Buying and Selling of specialized bank paper,
i.e. CD's and Bank guarantees." The Frontier Assets literature
offered the further assurance that all investor loans were "fully
secured and guaranteed by an International Foundation. In the
eventuality of a disruption in the program, the principal amount
of your loan is guaranteed to be returned to you within 60 days."

Contrary to the representations about how the money
would be invested, Frontier Assets did not invest customer funds
in the exclusive programs to which it claimed to have access.
Rather, the only funds paid into the Frontier Assets accounts
were monies that had been provided by investors in the program,
and the only payments out were payments of interest to investors,
and transfers to ANDERSON and other co-conspirators. Like many
other Ponzi schemes, more recent investors in Frontier Assets
ultimately lost a substantial portion, if not all, of their
invested principal. In total, at least 50 investors were
defrauded of at least $4 million in funds.

ANDERSON, 64, resides in Vancouver, British Columbia,
Canada.

In addition to the prison term, Judge HELLERSTEIN
indicated that restitution would be ordered to the victims, in an
exact amount to be determined in the next 90 days. In sentencing
ANDERSON, Judge HELLERSTEIN stressed the impact of this very
serious crime on the victims, noting that ANDERSON not only
ripped off the victims' pocketbooks, but "ripped out their
hearts" as well.

Mr. BHARARA praised the Federal Bureau of
Investigation's Joint Terrorism Task Force for their work in this
case.

Assistant United States Attorneys JONATHAN S. KOLODNER,
JENNIFER G. RODGERS, and ANJAN SAHNI are in charge of the
prosecution.